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Modulo Capital Negotiates to Return $400 Million to Alameda Research

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On February 15, the New York Times quoted people familiar with the matter as reporting that the founder of Modulo Capital had been reviewed by the prosecutor i…

Modulo Capital Negotiates to Return $400 Million to Alameda Research

On February 15, the New York Times quoted people familiar with the matter as reporting that the founder of Modulo Capital had been reviewed by the prosecutor investigating FTX and was negotiating with the FTX bankruptcy lawyer to return Alameda Research’s $400 million investment. People familiar with the matter said that FTX bankruptcy lawyers hoped to use FTX to exempt Modulo Capital from certain legal liabilities in exchange for the return of investment funds. This part of the fund is currently deposited at JPMorgan Chase.

Insiders: The founder of Modulo Capital is negotiating with the FTX bankruptcy lawyer for the return of $400 million in investment

Interpretation of the news:


Modulo Capital, a US-based crypto asset management firm, was recently reviewed by a prosecutor investigating FTX, according to sources quoted by the New York Times on February 15. The legal review reportedly led Modulo’s founder to negotiate with FTX’s bankruptcy lawyer to return $400 million in investment funds to Alameda Research. This amount forms part of the fund that Modulo had deposited with JPMorgan Chase.

The reported review of Modulo Capital comes amidst a recent crackdown on investment firms in the United States. The new Biden administration has called for tighter regulation of the industry and has already taken steps to improve enforcement of existing financial laws. The investigation of FTX, which is one of the largest crypto exchanges in the world, is seen as part of this policy.

Sources speculate that FTX bankruptcy lawyers want to use Modulo’s return of funds to exempt the firm from significant legal liabilities. While it is unclear what those liabilities may be, it is likely that they stem from the turbulent year that FTX had in 2020. The company had to deal with a slew of regulatory challenges and was also hit with a high-profile hack.

The news of Modulo’s negotiations has led to some uncertainty in the crypto asset management world. Modulo is known for its high-risk investment strategies, which have yielded high returns in the past. Its founder, James Kuo, has remained tight-lipped about the investigation and the negotiations his firm is having with FTX. This has led to speculation that the situation is more complex than it appears.

Overall, the situation with Modulo Capital highlights the growing regulatory challenges facing the crypto industry. It is likely that more investment firms will come under scrutiny in the coming months as governments across the world seek to tighten their grip on the industry. For Modulo, the outcome of its negotiations with FTX will be closely watched by investors and observers alike.

In conclusion, Modulo Capital’s reported negotiation with FTX bankruptcy lawyers to return $400 million to Alameda Research underscores the growing regulatory scrutiny of the crypto industry. The situation is complex and uncertain, and its outcome will be closely watched by stakeholders in the industry.

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